- Merger talks have begun between Honda and Nissan
- The merger will put the automakers under a joint holding company by August 2026
- EVs, hybrids, platforms, and software will be at the core of overlap
A potential strategic partnership between Honda and Nissan would ally them on intelligence, EVs, and more, the global automakers confirmed on Monday.
The companies signed a memorandum of understanding as a first step toward merger talks, with Mitsubishi potentially joining as a third partner. Nissan already owns approximately 34% of Mitsubishi shares, and there has been some platform-sharing between the two automakers.
The plan is for the merged automakers to operate under a holding company with a delisting of both automakers on the Tokyo Stock Exchange at the end of July or August of 2026. The shares of both companies would then be transferred into he new holding company.
A report from Japanese news outlet Nikkei cited competition from Tesla and Chinese automakers in the EV segment as one of the main factors behind the merger.
2023 Nissan Ariya e-4orce
This follows a March announcement by Honda and Nissan of a memorandum of understanding for a “strategic partnership in the fields of vehicle electrification and intelligence” expected to cover EVs, hybrids, and software. Mitsubishi was tipped to join that partnership in August. The current alliance between Nissan, Mitsubishi, and French automaker has also collaborated with Honda in the past, most recently on the Altna battery-leasing joint venture.
Combined sales of Honda and Nissan in 2023 totaled more than 8 million vehicles. That would make the merged automaker the third largest by sales volume after Toyota and the Volkswagen Group, which sold 11.2 million and 9.2 million vehicles in 2023, respectively.
A full merger will likely be a needed lifeline for Nissan. The automaker in October announced plans to lay off approximately 9,000 employees, representing 6.7% of its global workforce, and cut production capacity by 20% due to declining sales, primarily in the U.S. and China.
2025 Honda Civic Hybrid
Both automakers are in the midst of an EV reset, with Honda preparing to roll out its 0 Series starting in 2026 and Nissan preparing a next-generation Leaf, as well as larger models for assembly in Mississippi.
The automakers noted the merger would allow for optimization of manufacturing systems and facilities and standardization of vehicle platforms.
Hybrids could present more immediate opportunities for integration. Honda’s two-motor hybrid system could replace Nissan’s e-Power hybrid system, which still hasn’t made it to the U.S. after years of discussion. Nissan, meanwhile, could take the lead in electrifying pickup trucks and SUVs—including the body-on-frame models Honda currently lacks.
This story was updated on Dec. 23 after the automakers confirmed the merger plans.